For Immediate Release

Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax

JEFFERSONVILLE, Ind. -- When Bethlehem Steel and Novamerican Steel searched for the best place to locate a new joint venture - BethNova Tube, LLC - Indiana's strong tradition in the steel industry made it a natural choice.

Today, Lt. Governor Joe Kernan welcomed BethNova Tube, as officials broke ground for the new facility at the Clark Maritime Centre in Jeffersonville.

"BethNova builds on Indiana's great strength in the steel industry, and we know this is the start of a promising future for the company in Indiana," said Kernan. "The investment and new jobs this project will generate are important to the local economy, and I'm proud to help welcome BethNova to Jeffersonville."

The company will construct a 100,000-square-foot facility to produce steel tubes for use in hydroforming automobile and truck parts. The bulk of the tube production at the new facility is dedicated to Dana Corp., a major automotive parts supplier, which is in the process of building a new hydroforming plant near Elizabethtown, Ky. As part of the expansion, the company is expected to create a capital investment of $19.5 million and 74 new Hoosier jobs.

"This venture represents still another action by Bethlehem Steel to advance new technology and develop innovative products and services that will improve the value of steel for our customers," said Duane R. Dunham, Bethlehem's chairman, president and chief executive officer. "The joint venture between Bethlehem Steel and Novamerican Steel, one of the leading manufacturers of tubing for hydroforming application, will provide automakers and their suppliers with a premier source and location of tubes."

"Partnerships between companies continue to grow in number and importance within the American economic landscape," said Rob Taberner, vice-president of Novamerican Steel, speaking on behalf of D. Bryan Jones, Chairman and CEO, who was unable to attend. "It is an honor for us to be here today at the Indiana Port Commission Steel Campus in Jeffersonville with Bethlehem Steel to launch the construction of the BethNova facility."

The Indiana Department of Commerce partnered with the City of Jeffersonville and the Indiana Port Commission to help secure the project for Indiana. Commerce offered the company a $45,000 Training 2000 grant to defray the costs of training new employees. Commerce also awarded the company up to $650,000 in EDGE (Economic Development for a Growing Economy) tax credits. In addition, Commerce provided Jeffersonville with $180,000 from its Industrial Development Grant Fund to support infrastructure improvements for the project.

"The assistance of the state had a positive impact on this project, and we're thankful for that support," said Jeffersonville Mayor Thomas Galligan. "This is an important development for Jeffersonville and all of Clark County, as our economic progress continues."

"The ports play a vital role in the state's economic growth," said Don Miller, executive director of the Indiana Port Commission. "It is always a pleasure to forge partnerships that ultimately benefit the people of Indiana. We look forward to more success in the future, and growing Indiana's business clusters at its ports.

"The Indiana Port Commission is a seven-member bi-partisan committee appointed by the Governor of Indiana to oversee the development of the state's three public ports and a network of Foreign Trade Zones statewide. An Indiana University study shows that private sector investments in the state's three public ports now total $2.5 billion, and account for approximately 7,000 jobs.

Novamerican Steel, headquartered in Montreal, owns tube-making facilities and service centers throughout eastern Canada and the northeast United States. It operates one of North America's first tube mills targeted specifically for high-pressure hydroformed tubes.

Bethlehem Steel is the second largest integrated steel company in the U.S. and is a major supplier of steel to the automotive manufacturing industry.

The Indiana Department of Commerce awards Training 2000 grants to Indiana companies, primarily manufacturers, which undertake capital-investment projects. The grants help defray the costs of training new and current employees in basic work skills and company-specific skills necessary to support these projects. EDGE tax credits are based on payroll and are awarded to companies that expand within Indiana, particularly when a project would otherwise locate in another state or country. The Industrial Development Grant Fund provides assistance to local units of government for off-site infrastructure projects in support of new business development.

Companies interested in the Training 2000 grant program, the EDGE program or the Industrial Development Grant Fund should contact the Business Development Division of the Indiana Department of Commerce at (800) 463-8081 or (317) 232-8888.